In this paper we present a model that explains migrations as decisions that respond to where human capital can be acquired more efficiently, and where the return to human capital is highest. The basic framework is a dynamic Roy model in which a worker possesses two distinct skills that can be...

The survey presents basic facts on wage growth and summarizes the main ideas on the possible sources of this growth. We document that wage growth happens mainly early in the life cycle and is then associated with increasing labor force participation and high job mobility. Wage growth during the...

We formulate and estimate a dynamic model of marriage, divorce, and remarriage using panel data on two cohorts of Danish men and women. The marital surplus is identified from the probability of divorce and the surplus shares of husbands and wives from their willingness to enter marriage. We find...

We construct a structural model of household decision-making and matching and estimate the returns to schooling within marriage. We consider agents with idiosyn- cratic preferences for marriage that may be correlated with education, and we allow the education levels of spouses to interact in...

The paper analyzes the joint determination of wives' earnings and labor force participation over the life cycle given the interruptions in wives' work careers. The interruptions affect the profitability of the investment in human capital, which in turn determines earnings. The earnings prospects...

Cultural differences among societies may translate into different social status of occupations and can, therefore, affect the workers' choice of education and occupation and, consequently, the equilibrium level of output and wages. Conversely, the economic choices of individuals influence the...